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How Bitcoin Spot ETFS Affect Spot Prices

Author

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  • Dimiter Shalvardjiev

Abstract

The emergence of Bitcoin as a major alternative investment asset has driven the development of financial instruments like Bitcoin Spot Exchange-Traded Funds (ETFs), offering broader market access and deeper integration into global trading ecosystems. This study analyses the impact of the introduction of Bitcoin exchange-traded funds (ETFs) on spot Bitcoin prices by analysing how the introduction of ETFs and their trading volumes influence price dynamics. Employing high-frequency trading data and advanced econometric methods, the research highlights the short-term and long-term interplay between ETF inflows and Bitcoin market behaviour. The findings provide insights for investors, policymakers, and market participants navigating the cryptocurrency landscape, emphasising the feedback mechanisms between traditional derivative instruments and native digital trading. This study reveals that Bitcoin ETF inflows influence spot market price dynamics in the short term, driven by investor sentiment and market momentum. However, Bitcoin prices exhibit independence from ETF inflows over longer horizons, highlighting the dominant role of underlying market mechanisms. Higher-frequency data analysis underscores the rapid adjustments in Bitcoin trading, while advanced econometric models confirm a stable long-term equilibrium relationship between ETF inflows and Bitcoin prices. These insights offer critical implications for observers navigating the evolving cryptocurrency ecosystem.

Suggested Citation

  • Dimiter Shalvardjiev, 2026. "How Bitcoin Spot ETFS Affect Spot Prices," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 175-196.
    • Handle: RePEc:bas:econst:y:2026:i:2:p:175-196
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    File URL: http://archive.econ-studies.iki.bas.bg/2026/2026_02/2026_02_010.pdf
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    More about this item

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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